Nepal: Dolma Impact Fund II closes first round with US$40m

Dolma Fund Management has announced the first close of Dolma Impact Fund II (Dolma II) – a private equity fund investing primarily in renewable energy, healthcare and technology in Nepal.

Investors in this US$40m first close are FMO, the Dutch entrepreneurial development bank; CDC Group, the UK’s development finance institution and impact investor; Swedfund, the Swedish development finance institution; and the International Finance Corporation (IFC). The final close is targeted at US$75m.

The timing is important as Covid cases rise in Nepal, following the trend in India. Dolma II’s target sectors will directly address capacity constraints in healthcare and enable digital solutions to scale rapidly, something that will be vital both during and following the pandemic.

Dolma II follows the success of Dolma Impact Fund I (Dolma I) which pioneered institutional FDI and Environmental and Social standards from 2014 in this high-growth emerging market. Dolma I’s portfolio includes almost 50 MW of renewable energy, some of the country’s leading AI and e-commerce firms, and much-needed pharmaceutical manufacturing and medical care.

Jaap Reinking, director Private Equity, FMO said: “As an anchor investor in Dolma Impact Fund I, we’re excited to invest in Dolma Fund Management’s second fund. Not only does this support our ambitions towards accelerating climate action, financial inclusion, and reducing inequalities, it also focuses on improving environmental and social conditions for many Nepalese workers and businesses. We are proud to support Dolma Fund Management as it will invest in the emerging tech sector and much-needed healthcare services and jobs in Nepal.”

Dolma Impact Fund I and II target risk-adjusted market returns while their impact is aligned to Nepal’s SDG targets.